One97 Communications, the parent company of Paytm, has granted 1,04,400 stock options to eligible employees under its One97 Employees Stock Option Scheme 2019 (ESOP 2019). The grant, approved by the company’s Nomination and Remuneration Committee on May 6,2025, allows each option to be converted into one fully paid-up equity share of INR 1 face value, with an exercise price of INR 9 per share. Based on the current market price, the total value of this ESOP grant is estimated at INR 8.7 Cr.
This move comes as a part of Paytm’s ongoing strategy to retain and motivate talent in the highly competitive fintech sector. ESOPs are a key for aligning employee interests with shareholder value, especially as the company navigates regulatory challenges and fluctuating market conditions.
In the same committee meeting, the company acknowledged the voluntary forfeiture, cancellation and lapse of 6,60,284 stock options-comprising 2,24,685 cancelled options and 4,35,599 options that lapsed under the scheme’s terms. Such lapses and cancellations are typical as employees exit or do not meet vesting requirements.
The ESOP grant precedes Paytm’s scheduled announcement of its Q4 FY25 results. In Q3 FY25, Paytm reported a consolidated net loss of INR 208.5 Cr, narrowing from INR 221.7 Cr in the same quarter last year, while operating revenue dropped 36% YoY to INR 1,827.8 Cr. Despite the revenue decline, the company saw a partial recovery in its digital payments business.
According to Business Headline, Paytm has been actively expanding its ESOP pool in recent months. In March, the company granted 1.09 Lakh stock options and previously allotted 84,793 equity shares under the ESOP schemes. This follows multiple ESOP grants and share allotments since the start of the year, reflecting a consistent focus on employee incentives.
However, Paytm continues to face regulatory scrutiny. The ED recently issued a show-cause notice for alleged FEMA violations, citing failures to report foreign investments to the RBI. Additionally, the GST department fines Paytm’s founder and CEO Vijay Shekhar Sharma worth INR 59.94 Lakh and imposes an additional penalty of INR 1.19 Cr on One97 Communications for tax compliance issues.
